Founding a business inspired by close entrepreneurial ties: Does it matter for survival?

Abstract

Founding a business may be inspired by close entrepreneurial ties, that is, business-owning relatives or friends. We analyze if and when such inspiration is associated with post-entry survival. Drawing on longitudinal data on 942 founders, we find a positive relationship only if founders start by taking over an existing business, or spend considerable time at start-up. Moreover, the impact of close tie inspiration is negative for founders with prior entrepreneurial experience, revealing a dark side to serial entrepreneurship. Our findings show that new firm survival can be better understood by modeling contingency variables.

title = "Founding a business inspired by close entrepreneurial ties: Does it matter for survival?",

abstract = "Founding a business may be inspired by close entrepreneurial ties, that is, business-owning relatives or friends. We analyze if and when such inspiration is associated with post-entry survival. Drawing on longitudinal data on 942 founders, we find a positive relationship only if founders start by taking over an existing business, or spend considerable time at start-up. Moreover, the impact of close tie inspiration is negative for founders with prior entrepreneurial experience, revealing a dark side to serial entrepreneurship. Our findings show that new firm survival can be better understood by modeling contingency variables.",

author = "{de Jong}, Jeroen and O Marsili",

year = "2015",

month = "9",

doi = "10.1111/etap.12086",

language = "English",

volume = "39",

pages = "1005--1025",

journal = "Entrepreneurship, Theory and Practice",

issn = "1042-2587",

publisher = "Wiley-Blackwell",

number = "5",

}

TY - JOUR

T1 - Founding a business inspired by close entrepreneurial ties

T2 - Does it matter for survival?

AU - de Jong, Jeroen

AU - Marsili, O

PY - 2015/9

Y1 - 2015/9

N2 - Founding a business may be inspired by close entrepreneurial ties, that is, business-owning relatives or friends. We analyze if and when such inspiration is associated with post-entry survival. Drawing on longitudinal data on 942 founders, we find a positive relationship only if founders start by taking over an existing business, or spend considerable time at start-up. Moreover, the impact of close tie inspiration is negative for founders with prior entrepreneurial experience, revealing a dark side to serial entrepreneurship. Our findings show that new firm survival can be better understood by modeling contingency variables.

AB - Founding a business may be inspired by close entrepreneurial ties, that is, business-owning relatives or friends. We analyze if and when such inspiration is associated with post-entry survival. Drawing on longitudinal data on 942 founders, we find a positive relationship only if founders start by taking over an existing business, or spend considerable time at start-up. Moreover, the impact of close tie inspiration is negative for founders with prior entrepreneurial experience, revealing a dark side to serial entrepreneurship. Our findings show that new firm survival can be better understood by modeling contingency variables.